Canada Post managed to turn a profit in 2012, but the profits are the result of non-cash adjustments to labour costs, and from operations. According to the Crown corporation’s annual report, $98 million in future sick leave and post-retirement health benefits were saved as a result of the new collective agreement reached in late 2012. That allowed for a one-time adjustment without which Canada Post would have posted a loss of $54 million in that year. The loss would have been tempered by profits from Canada Post’s other operations, such as Purolator, but the Canada Post group as a whole would still have posted a loss of $25 million. Continue reading →
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Sure, the corporation was piling up profits in the millions, but it had expenses in the billions. Canada Post is one of the largest businesses in Canada, and much of its costs are related to labour, and the cost of fulfilling its requirement to provide universal postal service to Canadians. Just a few years ago, when I was reviewing the annual report for the year 2010, I noticed that Canada Post, while making money then, was one bad week away from being in the red. Along came the labour problems of 2011, and that’s what happened. Lower volumes of mail, combined with an increase in the number of addresses to be served, means that it becomes increasingly less efficient to deliver mail.
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